4 Challenges Faced by the Hospitality Sector

By Apac CIO Outlook | Wednesday, September 09, 2020

The hospitality industry has significantly transformed, and consumer behavior has also changed, impacting the way management and marketing activities of hotels globally.

FREMONT, CA: Customer satisfaction is the top priority for the hospitality sector, and as such, they need to develop strategies to satisfy customer demands. However, there are some challenges the industry face, and these are:

Retaining and Finding Talent

As the hospitality industry expands, the need for attracting and retaining talents will become crucial. To stay on top of competitors, they need to have employees with exceptional skills.

But employee retention is a major issue, and the industry needs to create strategies and techniques to keep top talents and skills with them. Referral based hire is one approach they can use to safeguard talents as well as implement a process that will boost workers’ morale and productivity like flexible work schedules, technology, and incentives.

Personalizing Client’s Experience

Customers prefer personalized traveling and lodging experience as digital transformation has enabled them to access seamless and simplified services.

Investing in this trend has become an issue for the hospitality industry as clients travel three times a year, at the most. And this does not give them the chance to learn more about the clients and lesser opportunities for attracting clients.

Hotels need to provide unique designs, create memorable activities, and mobilize social media traffic if they want to enhance the client experience.

Innovative Technology

Electronic check-in is an innovative technology that many hotels have implemented, but some find it challenging. When hotels register a guest, they issue key cards with new identification recognition that uses frequencies. When the guest arrives, a text message mentioning the room number, time, and other details is sent to their mobile phone. The guest can directly move into their room and use the key card without confirming at the front desk.

However, for small and major hotels, this technology could reduce revenue and profit.

Reputation Management

Guests who have stayed in the hotel post reviews about it online via social media, and these reviews can negatively impact a hotel’s reputation. Therefore, the hospitability industry should try to maintain positive relationships with its guests. Hotels can diversify and implement online platforms to manage their reputation.

Maintain trust between service providers and customers is pivotal for an effective and efficient economic transaction.